Why so many are unemployed for so long

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Why so many are unemployed for so long

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Why so many are unemployed for so long

Overly generous unemployment benefits encourage workers to stay home

By Richard W. Rahn - - Monday, October 13, 2014

If you pay people not to work, what do you think they will do?

In a new staff paper published by the New York Federal Reserve Bank titled “Unemployment Benefits and Unemployment in the Great Recession,” the researchers found “that most of the persistent increase in unemployment during the Great Recession can be accounted for by the unprecedented extension of unemployment-benefit eligibility.” The irony here is that President Obama and the congressional Democrats kept voting to extend the unemployment benefits, which had the effect of keeping unemployment far higher for a much longer time than if they had not done so.

Many of those who voted for the extension of unemployment benefits — up to 99 weeks — probably were under the mistaken belief that the increased spending by the unemployed would stimulate the economy. What they and even some of their economic advisers forgot is that a coin has two sides. The money to pay the unemployment benefits had to come from higher taxes on the employed; greater borrowing, which sucked potentially productive capital out of the economy; or money creation, which undermines the value of money for everyone. All of these are big economic downers. As the Fed researchers explained: “Our results lead us to expect that the stimulative effect of higher spending by the unemployed is largely offset by the dramatic negative effect on employment.”

The artificially induced higher unemployment caused economic growth and total output to be significantly lower. The high unemployment and slow growth are major issues in the upcoming election — all working against the interest of the Democrats, who voted for this destructive policy.

Some Democrats voted for the extended unemployment benefits in the name of compassion for the unemployed without thinking through the consequences. As the researchers noted, those receiving unemployment benefits could afford to be more “picky” about what jobs they eventually chose to take, which added to wage pressure. The higher wage pressure caused employers to reduce the number of jobs they offered, thus causing fewer to be employed.

Jobs in the private sector are created by existing firms expanding or entrepreneurs creating new ventures and hence new jobs. Governments create impediments on job creation by doing such things as increasing taxes on labor, raising minimum wages above the full employment level, and increasing the number of nonproductive regulations. (Please see a short video with a very successful American entrepreneur, Bob Levy, discussing the growing difficulties of starting new businesses, on the website of the Center for Freedom and Prosperity Foundation.)

Clyde Wayne Crews of the Competitive Enterprise Institute produces an annual report detailing the rise of regulations. His new CEI report, “Ten Thousand Commandments,” shows that under Mr. Obama, new regulations have reached a record high, and are now running about 60 percent more numerous per year than at the end of the Reagan administration. Even worse is the growth in the average private and public cost of the regulations and the decline in serious cost-benefit analysis before the regulations are promulgated.

There is no logical reason why the number of new regulations should grow at increasing rates each year. Most people and most businesses already think they are greatly overregulated. It is as though Moses came down the mountain with 10 rules the first year, 12 additional ones the next year, 15 the next, and so on. Would we have been better off if he had? Can you even remember the first Ten Commandments from Moses, let alone the approximately 80,000 new rules the Obama administration came up with each of the past few years?

Places with higher incomes per capita and lower unemployment rates than the United States, such as Switzerland, Hong Kong and Singapore, get by perfectly well with far fewer regulations, lower taxes and smaller government. They also have less crime, a cleaner environment and higher life expectancies than the United States. Most importantly, what they do have is economic freedom. The new Economic Freedom of the World Annual Report was just released last week. (It may be obtained online at freetheworld.com.) Hong Kong ranks No. 1; Singapore, No. 2; Switzerland, No. 4; and the United States a lowly No. 12. (The U.S was No. 3 as recently as 2001). The good folks in Hong Kong are demonstrating to keep their freedoms, while China, ranking a miserable No. 115, is trying to restrict their liberties.

The evidence is overwhelming that economic freedom, not government handouts, leads to prosperity. Most Chinese and U.S. politicians understand this, yet their lust to control the lives of others overrides real compassion and sound economics.


Read more: http://www.washingtontimes.com/news/201 ... or-so-long
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Re: Why so many are unemployed for so long

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Re: Why so many are unemployed for so long

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Global structural changes in the economies of nations are indifferent to parochial social-political beliefs.
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Re: Why so many are unemployed for so long

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Report: All Net Jobs Growth Since 2007 Has Gone to Immigrants
By Ryan Lovelace
December 19, 2014 11:15 AM

All of the net gains in in jobs since 2007 have gone to immigrants — both legal and illegal — according to a new report from the Center for Immigration Studies, meaning that fewer native-born Americans are working today than were at the end of 2007.

From November 2007 through November 2014, the number of employed native-born Americans has decreased more than 1.45 million, while the number of employed immigrants has risen by more than 2 million (as the immigrant population grew rapidly, too), according to data compiled by the Department of Labor’s Bureau of Labor Statistics.

“Native employment has still not returned to pre-recession levels, while immigrant employment already exceeds pre-recession levels,” the report says. “Furthermore, even with recent job growth, the number of natives not in the labor force (neither working nor looking for work) continues to increase.”

Native-born Americans accounted for nearly 70 percent of the growth in the population aged 16 and older, the report notes, and yet fewer of them are working now than were in 2007.
Part of why so many are unemployed for so long.
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Re: Why so many are unemployed for so long

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deary me, better tell noam.
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Re: Why so many are unemployed for so long

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YMix wrote:.
.

Report: All Net Jobs Growth Since 2007 Has Gone to Immigrants

By Ryan Lovelace

December 19, 2014 11:15 AM

All of the net gains in in jobs since 2007 have gone to immigrants — both legal and illegal — according to a new report from the Center for Immigration Studies, meaning that fewer native-born Americans are working today than were at the end of 2007.

From November 2007 through November 2014, the number of employed native-born Americans has decreased more than 1.45 million, while the number of employed immigrants has risen by more than 2 million (as the immigrant population grew rapidly, too), according to data compiled by the Department of Labor’s Bureau of Labor Statistics.

“Native employment has still not returned to pre-recession levels, while immigrant employment already exceeds pre-recession levels,” the report says. “Furthermore, even with recent job growth, the number of natives not in the labor force (neither working nor looking for work) continues to increase.”

Native-born Americans accounted for nearly 70 percent of the growth in the population aged 16 and older, the report notes, and yet fewer of them are working now than were in 2007.

.
Part of why so many are unemployed for so long.

.

Interesting


"Native-born Americans" must ask themselves WHY ? ?

IMO, reason could be :

- immigrants more educated than unemployed Native-born Americans

- immigrants more eager to take jobs Native-born Americans would not

- unemployed Native-born Americans in a higher salary class (above $ 50K), immigrants (below $ 50K)

- unemployed Native-born Americans are in states that there is no job, no immigrants to those states (Illinoi/Cal)


.
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Re: Why so many are unemployed for so long

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Most likely reasons three and four.
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Re: Why so many are unemployed for so long

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chindit13 - Tue, Dec 23, 2014 - 11:59 AM

We are at the nascent stages of the post labor world, and as the Singularity approaches, it is only going to get worse.

The US exported "man-hour" jobs to Asia, but the Asian's gain is only temporary. Soon enough their new, boring, tedious, activities, that offer some sort of meaning and ego boost, will disappear as well, as technology 'obsoletes' them.

A century or so ago we had the Robber Barons, men who generated Zuckerberg-level wealth dealing with "manly" stuff like steel, railroads, oil, and autos. The new Barons write code, manipulate electrons, and provide the now-idled former labor force with diversions that fill the days from cradle to grave. So far, the majority "LIKES" what has been given them, and since the Fed helped the displaced through the transition by providing credit---credit which let the new Asian workforce believe they had a useful and long term purpose because Westerners bought their output---the US has growth.

The debt was a stopgap measure. We rail against what the Fed has done, but deep down we know it is a symptom, and not the cause of what really ails us. What really ails us is that labor is dead. It is barely necessary. It already has no pricing power.

The ability to earn has deserted the majority, so debt was handed out in the hope something unexpected, but labor/consumer positive, would materialize. It did not, because it couldn't. Labor is obsolete.

The coming generation is going to spend their brief existence being the star of their own movie, though with no real audience. They will LIKE and FRIEND each other, deluding themselves into thinking everybody is looking back at them and their AMAZING and EPIC life. We have passed through the Industrial Revolution and ended up in the Unsocial Revolution. We left the Gilded Age and entered the Age of Narcissism. It is the only thing many will ever know. Humans, being adaptable creatures, will find ways to enjoy it.

It is truly a Brave New World, kind of unsightly and uninspiring on the face of it, but anyone over the age of 40 should count himself or herself lucky that he or she enjoyed some of the Good Old Days.
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Re: Why so many are unemployed for so long

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Typhoon wrote:
chindit13 - Tue, Dec 23, 2014 - 11:59 AM

We are at the nascent stages of the post labor world, and as the Singularity approaches, it is only going to get worse.

The US exported "man-hour" jobs to Asia, but the Asian's gain is only temporary. Soon enough their new, boring, tedious, activities, that offer some sort of meaning and ego boost, will disappear as well, as technology 'obsoletes' them.

A century or so ago we had the Robber Barons, men who generated Zuckerberg-level wealth dealing with "manly" stuff like steel, railroads, oil, and autos. The new Barons write code, manipulate electrons, and provide the now-idled former labor force with diversions that fill the days from cradle to grave. So far, the majority "LIKES" what has been given them, and since the Fed helped the displaced through the transition by providing credit---credit which let the new Asian workforce believe they had a useful and long term purpose because Westerners bought their output---the US has growth.

The debt was a stopgap measure. We rail against what the Fed has done, but deep down we know it is a symptom, and not the cause of what really ails us. What really ails us is that labor is dead. It is barely necessary. It already has no pricing power.

The ability to earn has deserted the majority, so debt was handed out in the hope something unexpected, but labor/consumer positive, would materialize. It did not, because it couldn't. Labor is obsolete.

The coming generation is going to spend their brief existence being the star of their own movie, though with no real audience. They will LIKE and FRIEND each other, deluding themselves into thinking everybody is looking back at them and their AMAZING and EPIC life. We have passed through the Industrial Revolution and ended up in the Unsocial Revolution. We left the Gilded Age and entered the Age of Narcissism. It is the only thing many will ever know. Humans, being adaptable creatures, will find ways to enjoy it.

It is truly a Brave New World, kind of unsightly and uninspiring on the face of it, but anyone over the age of 40 should count himself or herself lucky that he or she enjoyed some of the Good Old Days.
Some of the "gains" in China were not even temporary gains for labor. Chinese steel mills from what I understand were built as lights out factories.
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Re: Why so many are unemployed for so long

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Typhoon wrote:
chindit13 - Tue, Dec 23, 2014 - 11:59 AM


The coming generation is going to spend their brief existence being the star of their own movie, though with no real audience. They will LIKE and FRIEND each other, deluding themselves into thinking everybody is looking back at them and their AMAZING and EPIC life. We have passed through the Industrial Revolution and ended up in the Unsocial Revolution. We left the Gilded Age and entered the Age of Narcissism. It is the only thing many will ever know. Humans, being adaptable creatures, will find ways to enjoy it.
Bravo, Chindit, bravo!

As someone else once wrote:

"People want nothing but mirrors around them; to reflect them while they are reflecting too. Reflections of reflections, and echoes of echoes. No beginning, and no end. No center, and no purpose."

"There was no such person; there was only a shell containing the opinions of her friends."
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Re: Why so many are unemployed for so long

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thats a little unfair, you could also see it as a backlash against the unespeakable horror of seeing that each of us is just an irrelevant and disposable ant in the 7+ billion strong anthill of humanity.

twas much easier kidding yourself you where the 'bestest at (blah)' in the old days when your competition was 2 mangy dogs and the fat kid in the village.
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Re: Why so many are unemployed for so long

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noddy wrote:thats a little unfair, you could also see it as a backlash against the unespeakable horror of seeing that each of us is just an irrelevant and disposable ant in the 7+ billion strong anthill of humanity.

twas much easier kidding yourself you where the 'bestest at (blah)' in the old days when your competition was 2 mangy dogs and the fat kid in the village.
Humans don't change much. Vanity has always been a blessing/curse.

Sure, the risk of being a zero in the 7 billion strong anthill are higher..... :( but so are the rewards of being a hero.... :)

and the dude with billions of $ and thousands of friends still gets irritated by a single numbskull disagreeing with him/her...... :(

I'm not sure the act of imagining other people either like me or hate me is any easier or harder today than it has ever been previously.

Depends upon which song one's internal demons are singing at the moment.

I assume the use of the word "unespeakable" is intentional. Brilliant!


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Re: Why so many are unemployed for so long

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The fundamental problem is too many people. I just don't see any benefit to having more people and would greatly prefer the population be reduced dramatically. This planet's bounty and beauty are finite. Every new suburban development shrinks the wild frontier, robbing us of unspoiled land that can be admired in relative solitude. Within our lifetime, there will be no more elephants roaming the African savanna. The Great Barrier reef will likely die off completely. I think at this point, it is safe to say the marginal value of a human life is negligible.
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Re: Why so many are unemployed for so long

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Zack Morris wrote:The fundamental problem is too many people.
Oh?
Zack Morris wrote:I just don't see any benefit to having more people and would greatly prefer the population be reduced dramatically.
So who gets to decide as to which part of the planet's population is reduced?
Zack Morris wrote:This planet's bounty and beauty are finite.
Eventually, yes. What evidence do you have that we're near carrying capacity?
Zack Morris wrote:Every new suburban development shrinks the wild frontier, robbing us of unspoiled land that can be admired in relative solitude.
:?:

In the continental US, most of the population is concentrated in existing cities. The number of trees in the US has increased over the last century.
Zack Morris wrote:Within our lifetime, there will be no more elephants roaming the African savanna.
A problem of poaching.
Zack Morris wrote:The Great Barrier reef will likely die off completely.
Evidence + link?
Zack Morris wrote:I think at this point, it is safe to say the marginal value of a human life is negligible.
People promoting such beliefs should lead by example.
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Re: Why so many are unemployed for so long

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Simple Minded wrote: I'm not sure the act of imagining other people either like me or hate me is any easier or harder today than it has ever been previously.

Depends upon which song one's internal demons are singing at the moment.
true enough i sposes.
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Re: Why so many are unemployed for so long

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Zack Morris wrote:The fundamental problem is too many people. I just don't see any benefit to having more people and would greatly prefer the population be reduced dramatically. This planet's bounty and beauty are finite. Every new suburban development shrinks the wild frontier, robbing us of unspoiled land that can be admired in relative solitude. Within our lifetime, there will be no more elephants roaming the African savanna. The Great Barrier reef will likely die off completely. I think at this point, it is safe to say the marginal value of a human life is negligible.
its all well and good to bemoan the destruction of the wild, i do, i hate it - its also best to remember that the world throws up ice ages and meteor strikes and the actual crime of humanity (if there is one) is to do a mass extinction a bit earlier than the usual schedule.

everything is doomed, its the way this thing works.
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Re: Why so many are unemployed for so long

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Zack Morris wrote:The fundamental problem is too many people. I just don't see any benefit to having more people and would greatly prefer the population be reduced dramatically. This planet's bounty and beauty are finite. Every new suburban development shrinks the wild frontier, robbing us of unspoiled land that can be admired in relative solitude. Within our lifetime, there will be no more elephants roaming the African savanna. The Great Barrier reef will likely die off completely. I think at this point, it is safe to say the marginal value of a human life is negligible.
Fewer people wouldn't make the problem disappear, because unemployment is more a question of inability to being productive than too many people chasing too few jobs. And this results from a capitalist frame of mind where value only exists when something can be sold, and sold for a profit. But there is a lot of value in things that cannot be sold. Pure air, a clean environment, the preservation of threatened species, compassion, companionship, etc. Improving our collective quality of life would be of great value, but most of the things listed above do not interest capitalists because they couldn't make money out of it. The solution for unemployment due to a lack of productive skills can only be found when we use the unemployed in tasks such as caring for the environment, preserving the ecology, keeping company to old and lonely people, caring for the young when parents are busy, etc. Some of these things are done on a voluntary basis but should be organized by the community and duly rewarded by means of a salary, because we all benefit from them. Let's not kid ourselves. The day will come when all labour can be replaced by machines. Only tasks requiring inventiveness, creativity, intelligence and decision-making will remain. How many people will that occupy? Ten percent of the population? What will the others do? The productivity of the ten percent may be high enough to guarantee a good life for everybody, but the ninety percent will have to find ways to be busy and happy in a non-disruptive way. It will be a psychological problem rather than economic...
Last edited by Endovelico on Sat Dec 27, 2014 2:21 pm, edited 1 time in total.
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Re: Why so many are unemployed for so long

Post by Simple Minded »

Typhoon wrote:
Zack Morris wrote:
The fundamental problem is too many people.
Oh?
Zack Morris wrote:I think at this point, it is safe to say the marginal value of a human life is negligible.
People promoting such beliefs should lead by example.
:lol: :lol: Beat me to it.

Typhoon is right. Zack, it is time to man up or shut up.

It is hard to respect those who don't follow their own belief system to the logical conclusion.

In the spirit of helping yutes achieve their aspirations, I'll buy the rope...... ;)

Do it for the rhinos and the icebergs (no, not the Jewish kind....)
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Re: Why so many are unemployed for so long

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Simple Minded wrote:
Typhoon wrote:
Zack Morris wrote:
The fundamental problem is too many people.
Oh?
Zack Morris wrote:I think at this point, it is safe to say the marginal value of a human life is negligible.
People promoting such beliefs should lead by example.
:lol: :lol: Beat me to it.

Typhoon is right. Zack, it is time to man up or shut up.

It is hard to respect those who don't follow their own belief system to the logical conclusion.

In the spirit of helping yutes achieve their aspirations, I'll buy the rope...... ;)

Do it for the rhinos and the icebergs (no, not the Jewish kind....)
Yes Zack you should at least lead by a marginally less than negligible life. That way you could first among the negligible.

IT comes to mind the guy who constantly was suing the national park service over usage of a national park(I can't remember which at the moment) He was constantly in court over this or that being done in the park. He never mentioned in his law suits that he actually had a house and land adjacent to the park so it was really his attempt at making the park nearly impossible to use close to where he lived. Then it turned out that through a surveying mistake his house was actually built a few hundred feet inside of the park. When the Park service demanded he tear it down he started talking about how unfair that was over a simple mistake.

But unfortunately for him his arguments were negligible in "People of the United States vs. one self serving durian."
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Re: Why so many are unemployed for so long

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Typhoon wrote:
Zack Morris wrote:The fundamental problem is too many people.
Oh?
Absolutely. Humans have a far more pronounced impact on the environment than any other animal.
So who gets to decide as to which part of the planet's population is reduced?
It's a discussion worth having. But in general, I'm for anything that makes it more difficult for cities to spread and humans to reproduce.
Zack Morris wrote:This planet's bounty and beauty are finite.
Eventually, yes. What evidence do you have that we're near carrying capacity?
Strawman argument. Carrying capacity has nothing to do with it. It's totally irrelevant.
Zack Morris wrote:Every new suburban development shrinks the wild frontier, robbing us of unspoiled land that can be admired in relative solitude.
It's not just the suburbs, of course. The extremely wealthy -- whose numbers globally are only going to grow in absolute terms -- have been snapping up tens of thousands of acres of prized land and denying access to the public.
In the continental US, most of the population is concentrated in existing cities. The number of trees in the US has increased over the last century.
You're wrong.
Zack Morris wrote:Within our lifetime, there will be no more elephants roaming the African savanna.
A problem of poaching.
A problem of people.
Zack Morris wrote:The Great Barrier reef will likely die off completely.
Evidence + link?
The destruction of the world's coral reefs has been studied extensively for a couple of decades now.
Zack Morris wrote:I think at this point, it is safe to say the marginal value of a human life is negligible.
People promoting such beliefs should lead by example.
Well I certainly am not planning on having any kids. And whatever policies would deny others the ability, I will enthusiastically support.
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Re: Why so many are unemployed for so long

Post by Simple Minded »

Zack Morris wrote:
Well I certainly am not planning on having any kids. And whatever policies would deny others the ability, I will enthusiastically support.
But the real question Zack is are you getting yourself sterilized in order to be consistent with your ideals or are you just flappin yer gums?

Why wait for Big Brother to enforce the common good upon you? Be pro-active!

Psssst, if you want to make some points with Typhoon, in regards to overpopulation, you should reference Paul Erlich! ;)

that'll shut him down!
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Re: Why so many are unemployed for so long

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Simple Minded wrote:
Zack Morris wrote:
Well I certainly am not planning on having any kids. And whatever policies would deny others the ability, I will enthusiastically support.
But the real question Zack is are you getting yourself sterilized in order to be consistent with your ideals or are you just flappin yer gums?
You know, a vasectomy might not be such a bad idea. It would put me in full reproductive control.

Ultimately, since I don't plan on having any children, I don't really care whether others do or do not. I'll be long dead by the time this planet turns into some dreadful realization of Coruscant. So what do I care? It would have been nice to have been born a bit earlier but there's still just enough to enjoy in this lifetime. Although, sadly, some simple sublime pleasures of my youth, like climbing a mountain and being enveloped by thousands of monarch butterflies, are already only a memory.
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